GREAT LINK TO HONEST NUMBERS
by: Jann Swanson
Fannie/Freddie Need Your Money Again, But Not Like They Used To
Feb 15 2018, 12:32PM (not the dumb WSJ)
While the prospect of Fannie Mae and Freddie Mac needing taxpayer money conjures up images of a failing mortgage market requiring a government bailout, that's very far from the case this time around.
In fact, taxpayers continue to come out way ahead with respect to the GSEs' conservatorship agreement, even after the draws that will be needed to cover 4th quarter losses. At issue are one-time write-downs arising from accounting changes in response to the new tax bill. After this, it should be business as usual (a business that has been returning a significant amount of money to US taxpayers).
Both Freddie Mae and Fannie Mae posted strong full-year incomes for 2017 despite that both also suffered fourth quarter losses courtesy of the new tax law. Fannie's comprehensive income was $2.5 billion after a loss of $6.7 billion in the fourth quarter. Freddie Mac's numbers for the two respective periods were $5.6 billion and a $3.3 billion loss.
Fannie Mae said its full-year results were down from $12.3 billion for all of 2016 although its 2017 pre-tax net was higher, $18.4 billion versus 18.3 billion. The $6.5 billion net loss for the quarter was down from net income of $3.0 billion in Quarter 3.
The fourth quarter loss was the result of a remeasurement of the company's deferred tax assets due to the enactment of the Tax Act. The result was a one-time $9.9 billion provision for federal income taxes.
SHAME ON THE WSJ !!!!!!!!!
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